Palantir reported Q2 2026 earnings Monday that the company itself described as "otherworldly," and the stock agreed, jumping approximately 15 percent in after-hours trading to around $144 after closing at $125.65.
Revenue hit $1.935 billion, up 93 percent year over year and $135 million above the $1.80 billion consensus. EPS of $0.41 adjusted beat the $0.28 to $0.35 range of estimates by 24 to 46 percent depending on which consensus you use.
It is Palantir's ninth consecutive earnings beat. US commercial revenue, the number investors watch most closely as evidence that AI is translating into real enterprise adoption, surged 149 percent year over year to $764 million, up 380 percent since 2024. US government revenue grew 90 percent to $809 million.
The company raised its full-year revenue guidance to $8.154 billion, an 80 percent annual growth rate, and raised its adjusted free cash flow guidance to $4.5 to $4.7 billion. CEO Alex Karp told CNBC: "Forget consensus. To my knowledge, no business at our scale has ever grown half this much."
Palantir is still down 29 percent for the year heading into the after-hours reaction, as investors had been skeptical the AI software trade had legs. Monday's numbers made the skeptics work harder to explain themselves.